Microsoft’s results beat analysts estimates, based on strong cloud growth
Microsoft beat Wall Street estimates for revenue and profit in its first quarter today, as more businesses signed up for its Azure cloud computing services and Office 365 software. The company’s shares, up more than 21% over the past 12 months, rose 2.5% in after-hours trading.
“We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation,” said Satya Nadella, Microsoft’s chief executive. “We’re excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success.”
Much of Microsoft’s recent growth has been fueled by its cloud computing business, which has benefited from companies rushing to shift their workloads to the cloud to cut data storage and software costs.
Azure has an 18% share of the global cloud infrastructure market, making it the second-biggest provider of cloud services after Amazon Web Services, according to April estimates by research firm Canalys.
However, the company’s flagship cloud product recorded slower growth from the previous quarter. Revenue growth in the first quarter ended September was 76%, down from 89% in the fourth quarter. Microsoft’s focus on fast-growing cloud applications and platforms is helping it beat slowing demand for personal computers that has hurt sales of its Windows operating system.
Revenue from Microsoft’s personal computing division, its largest by revenue, rose 14.6% percent to $10.75bn. That figure beat the analyst estimate of $10.13bn.
The unit includes Windows software, Xbox gaming consoles, online search advertising and Surface personal computers. Revenue at its productivity and business processes unit, which includes Office 365, rose 18.6% to $9.77bn, topping analysts’ average expectation of $9.40bn, according to Refinitiv data.
Overall, the company’s revenue rose to $29.08bn from $24.54bn, which was above analysts’ average estimate of $27.90bn, according to Refinitiv.
Please mind the gap… or healthcare may fall
Imagine sharing a lengthy train journey with others. From beginning to end, imagine how often you might hear ‘mind the gap’ messages about embarking and disembarking safely. Picture how navigating…
Women Lead: My journey from Dragons’ Den to Silicon Valley
Following her appearance on Dragons’ Den, Sheila Hogan, serial entrepreneur, founder and chief executive of digital legacy vault, Biscuit Tin, shares her experience of her time in the Den and…
Look anywhere – the future is ‘aged tech’. But Scotland needs to be more adventurous
Scottish Care, as the representative body of independent social care providers of care home, care at home and housing support services, has been working over several years with colleagues in…
Women Lead: Engineer turned entrepreneur
We are always fascinated by other people’s stories. It’s how we connect, grow and learn from each other. Until very recently I always felt like I didn’t have a story to tell. Who…
‘Women – together we will change the dynamic in tech’
I was inspired to start a career in technology when personal computers were in their infancy and the internet decades away. My childhood dream of becoming a scientist was shaped by…
It’s time to change the future of tech apprenticeships – and we need your help
In his latest exclusive column for Futurescot, Ross Tuffee, chair of the Skills Development Scotland (SDS) Digital Economy Skills Group, calls on tech employers to get involved in shaping the…
What AI difference a year makes
Amazingly, it’s been one year since the publication of Scotland’s AI Strategy. And what a year it has been. Demanding but rewarding, with good progress made and great foundations laid…
International Women’s Day: It’s time to harness power of women in technology
As we celebrate International Women’s Day, I hope to be part of a future where barriers that prevent women from competing on a level playing field in the work environment…